OKLAHOMA CITY, March 4, 2022 /PRNewswire/ -- Mammoth Energy
Services, Inc. (NASDAQ: TUSK) ("Mammoth" or the "Company") today
issued the following statement in response to the Puerto Rico
Electric Power Authority ("PREPA") entering into a settlement
agreement with Whitefish Energy Holdings, LLC ("Whitefish") for
compensation owed for services rendered in Puerto Rico in the aftermath of Hurricane
Maria.
Arty Straehla, Chief Executive Officer of Mammoth, commented
"While it is certainly encouraging PREPA has begun addressing
amounts owed to post-bankruptcy creditors, Mammoth's subsidiary
Cobra Acquisitions LLC ("Cobra") is owed more than three times the
amount owed to Whitefish for our work restoring electricity for the
island of Puerto Rico. It has been
nearly five years since Hurricane Maria, and nearly three years
since Cobra completed its work, which has stood the test of time
during subsequent natural disasters. We are proud of our work, and
fully expect to be compensated for our efforts. It is clear the
time for talk is over, and the time for action is now. We have been
fully cooperative throughout this process, providing every piece of
requested documentation. PREPA is running out of excuses for
its refusal to pay, and if they continue to drag their feet, we
believe it will further impact their ability to exit from
bankruptcy."
Following Hurricane Maria (September
2017) in Puerto Rico and
its complete destruction of the island's power grid, Mammoth,
through Cobra, was awarded an initial $200
million restoration contract in 2017. Through five separate
amendments to the original contract, the aggregate contract amount
was eventually increased to $945
million. PREPA awarded a second contract of up to
$900 million to Cobra in response to
a Request for Proposals ("RFP") process.
As of February 28, 2022, Mammoth,
through Cobra, is owed $344 million
including $117 million in interest
charges, as specified in the contract, on remaining invoices for
work Cobra completed nearly three years ago.
Mammoth Energy Services, Inc.
Mammoth is an integrated, growth-oriented energy services
company focused on the construction and repair of the electric grid
for private utilities, public investor-owned utilities and
co-operative utilities through its infrastructure services
businesses. The Company also provides products and services to
enable the exploration and development of North American onshore
unconventional oil and natural gas reserves. Mammoth's suite of
services and products include: infrastructure services, well
completion services, natural sand and proppant services, drilling
services and other energy services. For more information, please
visit www.mammothenergy.com.
Contacts:
Mark Layton,
CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary Statements
This news release (and any oral statements made regarding the
subjects of this release, including on the conference call
announced herein) contains certain statements and information that
may constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts that
address activities, events or developments that Mammoth expects,
believes or anticipates will or may occur in the future are
forward-looking statements. The words "anticipate," "believe,"
"ensure," "expect," "if," "intend," "plan," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely" and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, acquisitions, returns, capital expenditure
budgets, costs and other guidance regarding future developments.
Forward-looking statements are not assurances of future
performance. These forward-looking statements are based on
management's current expectations and beliefs, forecasts for the
Company's existing operations, experience and perception of
historical trends, current conditions, anticipated future
developments and their effect on Mammoth, and other factors
believed to be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from historical
experience and present expectations or projections which are
implied or expressed by the forward-looking statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not
limited to: the severity and duration of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions and the resulting negative impact on demand for our
services; the volatility of oil and natural gas prices and actions
by OPEC members and other exporting nations affecting commodities
prices and production levels; the impact of the current
Russian/Ukrainian military conflict on the global energy and
capital markets and global stability; operational challenges
relating to the COVID-19 pandemic and efforts to mitigate the
spread of the virus, including logistical challenges, protecting
the health and well-being of our employees, remote work
arrangements, performance of contracts and supply chain
disruptions; the outcome of ongoing government investigations and
other legal proceedings, including those relating to the contracts
awarded to the Company's subsidiary Cobra Acquisitions LLC
("Cobra") by the Puerto Rico Electric Power Authority ("PREPA");
the failure to receive or delays in receiving governmental
authorizations, approvals and/or payments, including payments with
respect to the PREPA account receivable for prior services to PREPA
performed by Cobra; the Company's inability to replace the prior
levels of work in its business segments, including its
infrastructure and well completion services segments; risks
relating to economic conditions; whether a federal infrastructure
bill is implemented and the terms thereof; the loss of or
interruption in operations of one or more of Mammoth's significant
suppliers or customers; the loss of management and/or crews; the
outcome or settlement of our litigation matters, including the
adverse impact of the recent settlements with Gulfport Energy
Corporation and MasTec Renewables Puerto Rico, LLC, and the effect
on our financial condition and results of operations; the effects
of government regulation, permitting and other legal requirements;
operating risks; the adequacy of capital resources and liquidity;
Mammoth's ability to continue to comply with, or if applicable,
obtain a waiver of forecasted or actual noncompliance with certain
financial covenants and comply with other terms and conditions
under our recently amended revolving credit facility; weather;
natural disasters; litigation; volatility in commodity markets;
competition in the oil and natural gas and infrastructure
industries; and costs and availability of resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
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SOURCE Mammoth Energy Services